* Magyar Telekom agrees in principle to settle SEC probe
* Sets aside 11.7 bln forint provision in Q2 for settlement
BUDAPEST, June 27 Hungary's Magyar Telekom
has agreed in principle to settle a Securities and
Exchange Commission probe and set aside a provision of 11.7
billion forints ($61.6 million).
The provision occurred in the second quarter, the company
said over the weekend, adding that the final settlement
obligation may differ from this amount.
It said the decision follows an internal investigation at
Magyar Telekom into potentially illegal payments of more than 31
million euros ($43.90 million) at its Montenegrin or Macedonian
units, conducted parallel to investigations by the SEC and the
U.S. Department of Justice (DOJ).
The authorities and the company have tried to establish
whether Magyar Telekom breached U.S. laws, including the Foreign
Corrupt Practices Act.
"The Company, without admitting or denying the allegations
against it, would consent to a U.S. court order permanently
enjoining it from any future FCPA violations and to the payment
by the Company of disgorgement and a conditional civil penalty,"
Magyar Telekom said in a statement.
The company, a unit of Germany's Deutsche Telekom
(DTEGn.DE), said it continued to negotiate a settlement with the
DOJ, but may be unable to resolve the case that way and could
incur further penalties and criminal sanctions.
Magyar Telekom shares eased 0.9 percent to 576 forints by
0808 GMT on Monday, against a 0.2 percent lower wider market
(Reporting by Marton Dunai; Editing by Will Waterman)